January 2001

Communications-related Headlines for 1/31/01

EDTECH
U.S. May Amend Law Blocking Online Students From Federal Aid (WSJ)
School Is Spearheading Educational Technology (NYT)

PRIVACY
Tech Industry Calls for Privacy Self-Regulation (WSJ)

MEDIA & SOCIETY
Utah Shop Offers Popular Videos With The Sex And Violence Excised
(NYT)

EDTECH

U.S. MAY AMEND LAW BLOCKING ONLINE STUDENTS FROM FEDERAL AID
Issue: EdTech
The prospects of online higher education are looking brighter. The federal
government is likely to amend a little-known 1992 law preventing colleges
that teach more than half of their courses via "distance" education from
participating in federal financial-aid programs. The lack of federal aid has
been a definite deterrent for prospective online students and a drag on the
business of those who offer higher education via the Web. Gregory Cappelli,
an analyst for Credit Suisse First Boston, says eliminating the
distance-education barriers would increase postsecondary enrollment in
online education from a projected 2.2 million by the end of 2002 to three
million. However, Removing the 50% rule won't unlock federal aid for all
cyber-schools. Accreditation by a federally approved body is another
prerequisite for participation. While traditional colleges can simply modify
their accreditation to cover new online programs, new cyber-schools must
undergo a lengthy academic review.
[SOURCE: Wall Street Journal (B1), AUTHOR: Daniel Golden]
(http://interactive.wsj.com/articles/SB980896917629917965.htm)
(requires subscription)

SCHOOL IS SPEARHEADING EDUCATIONAL TECHNOLOGY
Issue: EdTech
Omaha North High School, a science and technology magnet school in Omaha, NE
has 1,100 computers for its 2,300 students and is one of the few schools in
the country to give an e-mail account to all students. Brad Fuerst's English
class, which is one of several that have a computer for every student, has
essentially become a paperless classroom. For each of his classes, Mr.
Fuerst has created a Web page that gives an overview of all the units the
class will cover, vocabulary lists and discussion questions. He has also
designed interactive quizzes that students can take online, and they submit
their homework to him via email. Mr. Fuerst feels that he is giving his
students an important opportunity they might not otherwise have to become
familiar with technology. "They don't all have a computer at home," he said.
"If we don't provide that here, the digital divide is going to become a
serious issue."
[SOURCE: New York Times (CyberTimes), AUTHOR: Susan Stellin]
(http://www.nytimes.com/2001/01/31/technology/31EDUCATION.html)
(requires registration)

PRIVACY

TECH INDUSTRY CALLS FOR PRIVACY SELF-REGULATION
Issue: Privacy
While Congress has shown great interest in Internet privacy, computer
technology companies want self-regulation in privacy matters. Privacy
advocates want to protect consumers with strong laws shielding personal
medical and financial information from the wrong hands, and letting
consumers change or remove their names and data about their Web surfing
habits from vast marketing databases. On the other hand, tech companies want
to protect themselves from a "crazy quilt" of contradictory state laws that
could make it impossible to do business on a global Internet. Indeed, The
American Electronics Association, a technology trade group, has said that
the Bush administration and Congress should focus on better science and math
education to boost high technology and leave privacy concerns to the
companies involved.
[SOURCE: USA Today (Interactive), AUTHOR: Associated Press]
(http://www.usatoday.com/life/cyber/tech/2001-01-30-tech-priorities.htm)
See Also:
GROUP: SELF - REGULATE TECH PRIVACY
[SOURCE: New York Times (Online), AUTHOR: The Associated Press]
(http://www.nytimes.com/aponline/national/AP-Tech-Priorities.html)
(requires registration)

MEDIA & SOCIETY

UTAH SHOP OFFERS POPULAR VIDEOS WITH THE SEX AND VIOLENCE EXCISED
Issue: Media & Society
CleanFlicks, a video rental outlet in Utah is offering videos relieved of
scenes that include sex, violence and profanity, thanks to the strong
religious beliefs and editing skills of the owner, Ray Lines. In the
CleanFlicks version of "Titanic," Leonardo DiCaprio and Kate Winslett never
appear without their clothes; in "Schindler's List," Liam Neeson as
Schindler does not have sex outside his marriage; in "Planes, Trains and
Automobiles," Steve Martin does not say naughty words; and in "Saving
Private Ryan," soldiers die but they do not bleed a lot. And business is
booming. Although Mr. Lines says his lawyer has assured him he is on firm
legal ground, violating no laws by altering others' creations, experts in
intellectual property rights and film company executives say not only is the
editing a potential copyright infringement, it is also an impingement on the
rights of artists. Rob Friedman, the vice chairman of the motion picture
group for Paramount Pictures says renting altered tapes is tantamount to
copyright and trademark infringement. Jack Valenti, executive director of
the Motion Picture Association of America, has asked his lawyers to look
into Mr. Lines's activities.
[SOURCE: New York Times (A11), AUTHOR: Michael Janofsky]
(http://www.nytimes.com/2001/01/31/national/31UTAH.html)
(requires registration)

--------------------------------------------------------------

Communications-related Headlines for 1/30/01

TELEPHONY
Big Loss for Phone Giant (NYT)
Long-Distance Price War on Hold, at Least for Now (NYT)

NONPROFITS
Bush Unveils 'Faith-Based' Initiative (WP)

BROADCASTING
'Nothing I Can Do,' Putin Tells NTV Staff (WP)
Super Bowl Ads Stir Violence Debate (WP)

JOBS
Disney Red-Lights Go.com Site (WP)
Dot-Coms May Need Crash Course In Labor Law Amid Broad Layoffs (WSJ)

ANTITRUST
Microsoft Says Judge Jackson Made 'Indefensible' Comments (WSJ)

TELEPHONY

BIG LOSS FOR PHONE GIANT
Issue: Telephony
The nation's largest long-distance company, AT&T, reported a fourth-quarter
loss of $1.7 billion yesterday. The company has been burdened high costs
related to its high-speed Internet holding, Excite( at )Home, and the erosion of
revenue from long-distance operations. Despite concern over AT&T's debt and
the decline of revenue from long-distance operations, investors and analysts
were optimistic about prospects at the company's fastest-growing division,
AT&T Wireless. In the fourth quarter, revenue at AT&T Wireless climbed 39
percent.
[SOURCE: New York Times (C1), AUTHOR: Simon Romero]
(http://www.nytimes.com/2001/01/30/technology/30PHON.html)
(requires registration)

LONG - DISTANCE PRICE WAR ON HOLD, AT LEAST FOR NOW
Issue: Telephony
The price war among U.S. long-distance phone companies that has brought down
both consumers' rates and carriers' revenues has slowed for the time being,
industry executives and analysts said. The big carriers, such as AT&T,
WorldCom and Sprint have kept their rates stable or dropping at a slower
rate. A break in the price war is good news for companies that have seen
their share prices and voice revenues drop as they fight for long-distance
customers. "If it (stable pricing) is even going on, it may just be the calm
before the storm," said Robert Gensler, portfolio manager of media and
telecoms funds at T. Rowe Price. Genesler believes that high-speed fiber
optic networks such as the one being built by Level 3 Communications could
attract customers with even lower rates.
[SOURCE: New York Times (Online), AUTHOR: Reuters]
(http://www.nytimes.com/reuters/technology/tech-telecoms-rates-d.html)
(requires registration)

NONPROFITS

BUSH UNVEILS 'FAITH-BASED' INITIATIVE
Issue: Nonprofits
President Bush has taken steps to launch a broad governmental effort to
invigorate the activities of nonprofit organizations and religious charities
in the battle against the nation's social problems. "Government will never
be replaced by charities and community groups," Bush told an assembly of
interfaith and community service leaders at the White House. "Yet when we
see social needs in America, my administration will look to faith-based
programs and community groups, which have proven their power to save and
change lives." Specifically, President Bush created an Office of Faith-Based
and Community Initiatives in the White House, which will work with centers
in five agencies -- Justice, Housing and Urban Development, Health and Human
Services, Labor and Education -- to ease regulations that inhibit religious
charities and to promote grass-roots efforts. Today, President Bush plans to
turn the initiative into an official legislative proposal. While the
proposal has brought objections from both civil liberties groups and from
some religious leaders who are worried that government would become
entangled in religion, others in the service arena praised the effort. "This
is a great day for civic renewal in this country," said former senator
Harris Wofford (D-Pa.), a former head of the national service corporation
(www.cns.gov).
[SOURCE: Washington Post (A01), AUTHOR: Dana Milbank]
(http://washingtonpost.com/wp-dyn/articles/A64391-2001Jan29.html)

BROADCASTING

'NOTHING I CAN DO,' PUTIN TELLS NTV STAFF
Issue: Television
President Vladimir Putin said today that while he opposes removing the
editorial team at NTV, Russia's main independent television network, he is
powerless to stop the legal and financial campaign being waged against it by
his own subordinates. A delegation of NTV journalists received a rare
audience with Putin. The journalists pleaded with him to put an end to eight
months of searches, arrests and lawsuits. The journalists said he told them:
"There is nothing I can do. I am glad to help, I will try, but they do not
obey me."
[SOURCE: Washington Post (A12 ), AUTHOR: Baker and Glasser]
(http://washingtonpost.com/wp-dyn/articles/A62707-2001Jan29.html)

SUPER BOWL ADS STIR VIOLENCE DEBATE
Issue: Violence and Media
Only a few months after Hollywood pledged to take steps to stop marketing
violent movies to underage children, film studios used the Super Bowl, with
its huge family audience, to launch marketing campaigns for some
particularly bloody movies. R-rated (and anticipated R-rated) movies,
"Hannibal," "Valentine," "Exit Wounds" and "Swordfish" all got their 30
seconds of family-time airplay. The Super Bowl "is a family activity, and
many parents will be very alarmed to see this kind of graphic violence
advertised," said Kathryn Montgomery, president of the Center for Media
Education, a public interest group that favors restrictions on Hollywood's
marketing efforts. Industry executives disagreed because the big game's
audience is predominately adult. "You can't avoid some spillover whenever
you are dealing with broadcasting," said MGM spokesman Craig Parsons. "We
are not interested in reaching" children under 17, he said. Motion Picture
Association of America President Jack Valenti said yesterday that the
studios are complying with guidelines issued by his organization in response
to a recent FTC report on the entertainment industry's practice of marketing
violence to youth.
[SOURCE: Washington Post (E01), AUTHOR: Christopher Stern]
(http://washingtonpost.com/wp-dyn/articles/A63904-2001Jan29.html)

JOBS

DISNEY RED-LIGHTS GO.COM SITE
Issue: Internet
Walt Disney Company is abandoning its Go.com Web portal. The company will
lay off 400 employees and put the Go.com search engine up for sale. The
death of Go is part of a broader trend in the dot-com sector, which has been
hit hard by a slowdown in online advertising. The retrenchment has struck
media outlets across the board, from CNN to the New York Times. Disney,
however had said that building an Internet enterprise was central to its
vast Media enterprise. "It was difficult for Disney to make the online media
business work in its present form," said Jordan Rohan, a media analyst with
Wit SoundView, an investment bank in New York. "So folding the online
business into the parent company makes a lot of sense. It was the right
decision, albeit a tough one." Disney launched Go.com in early 1999 to
compete with Yahoo and other general-interest portals. But Disney's dot-com
approach didn't work, Rohan said, in part because the company was a
latecomer to the portal world.
[SOURCE: Washington Post (E12), AUTHOR: Alec Klein]
(http://washingtonpost.com/wp-dyn/articles/A64668-2001Jan29.html)

DOT-COMS MAY NEED CRASH COURSE IN LABOR LAW AMID BROAD LAYOFFS
Issue: Jobs
Until recently, few New Economy workers had heard of the Worker Adjustment
and Retraining Notification, or WARN, Act- or that it applies to all
employees -- not just blue-collar workers. WARN requires a company with 100
or more employees to give 60 days notice before it can implement mass
layoffs or plant shutdowns. If a company doesn't give sufficient notice,
employees are entitled to 60 days back pay and compensation for benefits.
Companies may have to pay state fines. Earlier this month, Connecticut's
attorney general sued Walker Digital Inc. for allegedly failing to comply
with WARN. The Connecticut attorney general's office alleged that the
company violated the WARN Act in November when it laid off 80% of its staff,
or about 100 employees. Labor experts say that while the law was designed to
protect blue-collar workers, there's no indication that lawmakers intended
to exclude other types of employees. Those that aren't familiar with the
statute, plan to be. "I've never been told by my lawyers about it, I've
never heard about it, and none of my other friends have ever heard about
it," says Bill Cockayne, who co-founded Scout Electromedia, a wireless
company that layed off 80 employees last October after shutting down. "It's
the first thing on my 'ask my lawyer' list," says Mr. Cockayne, who is now a
director at Eastman Kodak Co.'s venture group.
[SOURCE: Wall Street Journal (Interactive), AUTHOR: Stephanie Miles]
(http://interactive.wsj.com/articles/SB979856682263520309.htm)
(requires subscription)
See Also:
MANY TECH WORKERS RELUCTANT TO JOIN UNIONS
[SOURCE: USA Today (Online), AUTHOR: Associated Press]
(http://www.usatoday.com/life/cyber/tech/2001-01-29-tech-unions.htm)

ANTITRUST

MICROSOFT SAYS JUDGE JACKSON MADE 'INDEFENSIBLE' COMMENTS
Issue: Antitrust
In court papers filed Monday, Microsoft again urged a federal appeals court
to reverse a landmark ruling that would split the software maker in two,
arguing that government trustbusters failed to make their case. Microsoft
argues that the trial judge who heard the case "demonstrated an animus
towards Microsoft so strong that it inevitably infected his rulings."
Microsoft pointed to interviews Judge Jackson gave to the media, including
comments cited in a new book written by Ken Auletta, which quotes judge
Thomas Penfield Jackson criticizing Microsoft Chairman Bill Gates for having
"a Napoleonic concept of himself and his company." The company also said
that if parts of the case must be retried, the appeals court should appoint
a different judge to preside. Microsoft's latest legal salvo comes as the
company, the Justice Department and 19 states prepare to argue before the
U.S. Court of Appeals for the District of Columbia on Feb. 26 and Feb. 27.
[SOURCE: Wall Street Journal (B11), AUTHOR: Scott Ritter]
(http://interactive.wsj.com/articles/SB980789916299344605.htm)
(requires subscription)
See Also
MICROSOFT ARGUES AGAINST BREAKUP ORDER
[SOURCE: USA Today (2B), AUTHOR: Associated press]
(http://www.usatoday.com/life/cyber/tech/2001-01-29-microsoft-filing.htm)

--------------------------------------------------------------

Communications-related Headlines for 1/26/01

MEDIA & SOCIETY
Supreme Court To Consider Digital Images (NYT)
FCC Released Notice On The Implementation Of Children's Internet
Protection Act (FCC)
Legislation Would Target Violent Games (USA)

EDTECH
New York School Web Site (NYT)

TELEPHONY
Florida Consumers Losing Out Over Failure of Local Phone Competition
(CFA)

BROADCASTING
Russian Gas Firm Claims TV Network (WP)

FCC
F.C.C.'s Powell Chooses Disney Exec as Chief of Staff (NYT)

MEDIA & SOCIETY

SUPREME COURT TO CONSIDER DIGITAL IMAGES
Issue: Media & Society
The United States Supreme Court has accepted for review a federal child
pornography law that has implications in the digital world. The question
the Supreme Court will be trying to address: May the government criminalize
computer-generated images of fictitious people engaged in imaginary acts?
According to legal thinkers, the question is an important one because it
comes at the dawn of an era of computer-created virtual environments. The
case comes to the Supreme Court by way of the United States Court of Appeals
for the Ninth Circuit, which struck down two parts of the most recent
amendments to the child pornography law. The United States Court of Appeals
for the Ninth Circuit rejected the government's main justification for a ban
on virtual child porn: that it whets the appetite of pedophiles and causes
them to victimize real children. That argument is hazardous, the court said,
because it "enables the criminalization of foul figments of creative
technology that do not involve any human victim in their creation or
presentation."
[SOURCE: New York Times, AUTHOR: Carl S. Kaplan]
(http://www.nytimes.com/2001/01/26/technology/26CYBERLAW.html)
(requires registration)

FCC RELEASED NOTICE ON THE IMPLEMENTATION OF CHILDREN'S INTERNET PROTECTION
ACT
Issue: Internet
The Federal Communications Commission released a Further Notice of Proposed
Rulemaking, seeking comment on implementation of the Children's Internet
Protection Act, which requires schools and libraries to use Internet filters
to be eligible for E-rate funding. Comments are due to the FCC 15 days after
publication in Federal Register (Dkt No. CC-96-45), Released 1/23/01.
[SOURCE: FCC]
(http://www.fcc.gov/ccb/universal_service/)

LEGISLATION WOULD TARGET VIOLENT GAMES
Issue: Media & Society
A group of Senators said Thursday they will introduce a bill next month that
would punish companies that market violent games to children. They, however,
credited the industry for getting nearly all of its manufacturers to use a
voluntary rating system. "Practically everybody in the industry still
markets inappropriate games to kids, practically every retailer regularly
sells these games to kids, and practically all parents need to know more
about the rating system," said Senator Herb Kohl, D-Wis. at a news
conference. The National Institute on Media and the Family, which released
its fifth annual report card on video and computer games on Thursday, gave
retailers a near-failing grade for allowing children younger than 17 to buy
video games rated for older players.
[SOURCE: USA Today (online), AUTHOR: Associated Press]
(http://www.usatoday.com/life/cyber/tech/review/games/2001-01-25-violence.ht
m)

FLORIDA CONSUMERS LOSING OUT OVER FAILURE OF LOCAL PHONE COMPETITION
Issue: Telephony
According to a recent report by the Consumer Federation of America there is
little competition in the local telephone market five years after the
passage of the 1996 Telecommunications Act, which was intended to open local
markets to competition.
[SOURCE: Consumer Federation of America]
(http://www.consumerfed.org/fl.telecom.0101.pdf)

BROADCASTING

RUSSIAN GAS FIRM CLAIMS TV NETWORK
Issue: Broadcasting
The state-controlled Gazprom energy monopoly claimed today to have taken
over Russia's main independent television network, NTV. Gazprom also
announced that it had begun appointing a new board of directors. The moves
could end seven years of Russian broadcasting free of government sway.
Alfred Kokh bluntly acknowledged Russian Presidents Vladmir Putin's
hands-on involvement. "Frankly speaking, I am sick of this talk about the
role of the Kremlin and I have to pretend that somehow the Kremlin has no
influence over it," he said. "It does." Kokh said Putin summoned him to his
country residence on Jan. 14 and told him: "Shares, debts, finances -- all
this is without doubt your prerogative. But journalists shall not be
touched. Management shall not be touched." Putin also reportedly guaranteed
"free speech," but, under the circumstances, the phrase has unclear meaning
and holds little comfort for NTV employees.
[SOURCE: Washington Post (A17), AUTHOR: Peter Baker]
(http://washingtonpost.com/wp-dyn/articles/A46883-2001Jan25.html)

FCC

F.C.C.'S POWELL CHOOSES DISNEY EXEC AS CHIEF OF STAFF
Issue: FCC
New Federal Communications Commission Chairman Michael Powell on Thursday
named Walt Disney executive Marsha MacBride as the agency's new chief of
staff. MacBride served as a vice president in Disney's Washington office,
which was heavily involved in lobbying the FCC to place strict conditions
on the America Online-Time Warner combination which was concluded earlier
this month.
[SOURCE: New York Times (Online), AUTHOR: Reuters]
(http://www.nytimes.com/reuters/technology/tech-telecoms-fcc-dc.html)
(requires registration)

--------------------------------------------------------------

Communications-related Headlines for 1/25/01

SPECTRUM
Big Companies Win Airwave Bids (NYT)

DIGITAL DIVIDE
Help on the Way for Former CLC Students (WP)

INTERNET
Mining the 'Deep Web' With Specialized Drills (NYT)
FTC Ends Investigation of DoubleClick (EPIC)

SPECTRUM

BIG COMPANIES WIN AIRWAVE BIDS
Issue: Auction
The nation's largest wireless phone services are taking advantage of
rules intended to help the smallest telecommunications companies by
striking agreements with smaller partners that will enable them to
win more than 160 licenses at a sharp discount, and by one rival's
estimate cost taxpayers as much as $626 million. The small companies
that were supposed to have received special treatment to promote
competition are complaining that they lost at the expense of giants
like AT&T Wireless, Sprint PCS, VoiceStream and Cingular, the joint
venture of SBC Communications and BellSouth. As the Federal
Communications Commission prepares to close its $17 billion auction,
more than 95 percent of the high bids have come from the largest
companies and their partners. FCC officials say the rules are supposed
to prevent smaller companies from being used as shams. But the rules
are also not supposed to discourage larger companies from making
investments in the smaller companies because telecommunications is so
capital intensive. Officials at the FCC said today that they would
examine the structure of the companies to assure that they complied
with the rules.
[SOURCE: New York Times, AUTHOR: Stephen Labaton]
(http://www.nytimes.com/2001/01/25/technology/25SPEC.html)
(requires registration)
See Also:
FCC AUCTION OF WIRELESS LICENSES RAISES A RECORD $17 BILLION SO FAR
[SOURCE: Wall Street Journal (), AUTHOR: Mark Wigfield]
(http://interactive.wsj.com/articles/SB980393070677828094.htm)
(requires subscription)

DIGITAL DIVIDE

HELP ON THE WAY FOR FORMER CLC STUDENTS
Issue: Digital Workforce Development
Federal and state education officials are aiding thousands of students
who were shut out of computer technology career training classes after
Computer Learning Centers Inc. of Manassas suddenly closed its 25
schools on Monday. The company closed its doors following a federal
government decision not to prepay student loans to CLC, after which
CLC's lender put a hold on its assets. CLC had 10,000 nationwide.
Federal and state officials are helping students complete specific
classes at other institutions, transfer to new programs or get their
loans forgiven. One Maryland official is suggesting that students who
just started a CLC program should lean toward retrieving funds, and
students who have almost completed their course work should look for
comparable programs. The situation is similar for Virginia students
and those other students nationwide. Many students were only a week
or two away from completing their degree programs and were banking
on completing their programs for job placement or advancement.
[SOURCE: Washington Post (E05), Author: Amy Joyce]
(http://washingtonpost.com/wp-dyn/articles/A43136-2001Jan24.html)

INTERNET

MINING THE 'DEEP WEB' WITH SPECIALIZED DRILLS
Issue: Internet
When President Bush made his choice of the new Labor Secretary, the
media were buzzing with news about Linda Chavez. But from the results
coming up in most popular search engines, you would never have known
it. On Alta Vista, some of the first results linked to Ms. Chavez's
old columns for an online magazine, but none of the links provided
even a hint of the fact that she had become front-page news. Search
engines can be pitifully inadequate, partly because they rely on
Web-page indexes that were compiled weeks before. Pages deep within
Web sites are also often missed, as are multimedia files, bibliographies,
the bits of information in databases and pages that come in PDF, Adobe's
portable document format. According to BrightPlanet.com, traditional
search engines have access to only a fraction of 1 percent of what exists
on the Web. To dig deeper into the Web, a new breed of search engine
has cropped up that takes a different approach to Web page retrieval.
Instead of broadly scanning the Web by indexing pages from any links
they can find, these search engines are devoted to drilling further
into specialty areas. Looking for timely financial data? Try
FinancialFind.com. Seeking sketches of molecular structures or even
scientific humor? Biolinks.com may help.
[SOURCE: New York Times, AUTHOR: Lisa Guernsey]
(http://www.nytimes.com/2001/01/25/technology/25SEAR.html)
(requires registration)

FTC ENDS INVESTIGATION OF DOUBLECLICK
Issue: Privacy
The Federal Trade Commission ended its investigation today into the
business practices of DoubleClick, Inc., a leading provider of
Internet-based advertising. In a letter to DoubleClick, the FTC
concluded that the company never used personally identifying information
in contravention of its privacy policy. In February 2000, EPIC filed
a complaint against DoubleClick, alleging that the company engaged in
unfair and deceptive trade practices by revising its privacy policies
to accommodate the advertiser's new data practices.
[SOURCE: Electronic Policy Network]
(http://www.epn.org/)

--------------------------------------------------------------

Communications-related Headlines for 1/24/01

EDTECH
A New Enterprise Joins Growing Community of Online Schools (NYT)

FCC
Powells' Links With AOL Time Warner Bring Ethics Considerations to
the Fore (WSJ)
FCC May Revise Limits on Spectrum Under the Control of Wireless
Providers (WSJ)

DIGITAL DIVIDE
Mexicans Wait More For A Phone (NYT)

BROADBAND
Fixed Wireless Challenges Cable Modem, DSL Net Access (SJM)

EDTECH

A NEW ENTERPRISE JOINS GROWING COMMUNITY OF ONLINE SCHOOLS
Issue: EdTech
104-year-old Calvert School in Baltimore, whose Home Instruction Division
has become "quite a big business," having taught more than 400,000 students
in 50 countries will be joined next fall by K12.com, a new Internet-based
school. K12.com is due to enroll its first students in grades K through 2
this fall and then add three grades each year until they reach a full
K-through-12 audience. The new endeavor is backed with an initial $10
million from Knowledge Universe Learning Group, and will be headed by Former
U.S. Secretary of Education William J. Bennett, an avowed skeptic about the
educational utility of the computer. Critics have said they see some value
to online educational programs, but only as supplements to traditional
classroom programs. Promotional materials from the new venture assert that
they will offer "world-class education to any elementary and secondary
student who is interested -- regardless of...how much money their family
makes."
[SOURCE: New York Times, AUTHOR: Margaret W. Goldsborough]
(http://www.nytimes.com/2001/01/24/technology/24EDUCATION.html)
(requires registration)

FCC

POWELLS' LINKS WITH AOL TIME WARNER BRING ETHICS CONSIDERATIONS TO THE FORE
Issue: Merger
Michael Powell, chosen by Mr. Bush this week to be chairman of the Federal
Communications Commission, was cleared by FCC lawyers to participate in the
AOL Time Warner merger vote on Jan. 11, despite his father's seat on AOL's
board. Michael Powell is the oldest son of Secretary of State Colin Powell.
"There is definitely an appearance issue with him [Michael Powell] voting on
the merger when his father stood to gain substantially," says Larry Noble of
the Washington-based Center for Responsive Politics, an ethics watchdog
organization. Although Colin Powell resigned from AOL's board the day before
his son and the four other FCC commissioners voted to approve the merger, he
left with options to buy 320,000 shares in the company for $8.62 million,
according to financial documents filed with the U.S. Office of Government
Ethics. Charles Lewis of the Center for Public Integrity said Michael Powell
should have recused himself. "I don't care that legally they don't think
there was a conflict," he said. "It looks bad. That, to me, is the
definition of conflict of interest." In one of his first official acts as
president, Mr. Bush set new ethics guidelines for his administration. "We
must remember the high standards that come with high office and it begins
with a careful adherence to the rules," he said. "This means avoiding even
the appearance of a problem."
[SOURCE: Wall Street Journal (A4), AUTHOR: Ted Bridis And Jill Carroll]
(http://interactive.wsj.com/articles/SB980293515369345266.htm)
(requires subscription)
See Also:
AOL TIME WARNER CUTS 2,000 JOBS
[SOURCE: USA Today (B1), AUTHOR: David Lieberman]
(http://www.usatoday.com/life/cyber/invest/2001-01-24-aoltw-job-cuts.htm)

FCC MAY REVISE LIMITS ON SPECTRUM UNDER THE CONTROL OF WIRELESS PROVIDERS
Issue: Wireless
The Federal Communications Commission will consider eliminating or modifying
limits on the amount of valuable spectrum that wireless-telecommunications
providers can control in a given market. The limits were aimed at promoting
competition by ensuring that no single player dominates a market. FCC
officials have said that no carrier appears to have reached its limits in
any given market. The new FCC Chairman Michael Powell has long been a critic
of the limits, as has Harold Furchtgott-Roth, another GOP commissioner. The
commission's two Democrats have generally supported spectrum caps in the
past. President Bush will appoint a third Republican to the five-member
commission. The future of wireless competition could be affected by the
makeup of the antitrust division of the Justice Department in the Bush
administration. Former Clinton antitrust chief Joel Klein blocked
consolidation by forcing merging wireless companies to divest overlapping
spectrum holdings. It isn't clear whether the Bush administration will
follow that policy.
[SOURCE: Wall Street Journal (A4), AUTHOR: Mark Wigfield]
(http://interactive.wsj.com/articles/SB980296246771800820.htm)
(requires subscription)

DIGITAL DIVIDE

MEXICANS WAIT MORE FOR A PHONE
Issue: Digital Divide
People said the only way to get a phone line in Mexico when the telephone
company was run by the government was to wait for a relative to die. In
1990, the state sold the monopoly to Telmex, with a promise to promote
efficiency and a competitive spirit. Mexicans no longer have to inherit a
phone, but they do need a fistful of cash - usually $120, in a country where
an average worker makes $200 a month. As a result, Mexico's ratio of phone
lines to people is among the lowest in Latin America, bested even by
Guatemala, El Salvador and Nicaragua. Hopes for more affordable residential
service were raised when Avantel, a major long-distance carrier, said last
week that it was ready to challenge Telmex by offering local service in
Mexico City. But analysts warn it will be large businesses, not ordinary
residents, who benefit from the new competition, following the pattern in
richer nations when competition has been introduced. "If I'm Citibank, I'm
really excited about it. But if I'm Jos

Communications-related Headlines for 1/23/01

FCC
Michael Powell Chosen by Bush to Head FCC (WP)

OPEN ACCESS
Top Court Takes Cases Questioning Local Telecom Network
Usage Fees (WSJ)

SPECTRUM
Auction Fails to Open Airwaves (WP)

RADIO
'Brother,' Where Art Thou? (WP)

FCC

MICHAEL POWELL CHOSEN BY BUSH TO HEAD FCC
Issue: FCC
President Bush named Michael K. Powell, son of Secretary of State
Colin L. Powell, as chairman of the Federal Communications Commission
yesterday. Powell, 37, has been on the five-member commission for
the past three years. While his position is neither a cabinet position,
nor requires Senate confirmation, it is nonetheless an extremely
powerful berth with its ability to shape the direction and future of the
Internet economy. Already, some expect that Powell's chairmanship will
reshape the regulatory balance to favor the large industries the
commission oversees -- broadcasting, cable and Bell telephone companies
-- and away from upstart telecommunications companies. Bell telephone
companies could benefit from a chairman who believes that the market,
not regulatory structure, should drive the shape of competition. The
Bells could benefit by an FCC that would make it easier for them to enter
long-distance-telephone and Internet-traffic markets. Major television
broadcasters expect Powell will take steps to relax or even eliminate
the cap on the number of stations broadcasters may own. "The oppressor
here is regulation," Powell said during a recent speech before the
Progress & Freedom Foundation. "We must foster competitive markets,
unencumbered by intrusions and distortions from inapt regulations."
While Powell is generally well respected on both sides of the aisle,
his popularity will not protect him from scrutiny during his chairmanship.
Andrew Schwartzman, president of the Media Access Project, has criticized
Powell's unwillingness to challenge media consolidation. But he
does not criticize Powell's grasp of the issues. "He is thoroughly qualified
by virtue of his competence for the job," he said.
[SOURCE: Washington Post (E01), AUTHOR: Goodman and Stern]
(http://washingtonpost.com/wp-dyn/articles/A31352-2001Jan22.html)

OPEN ACCESS

TOP COURT TAKES CASES QUESTIONING LOCAL TELECOM NETWORK USAGE FEES
Issue: Open Access
The Supreme Court agreed to resolve a complex regulatory brawl that
ultimately could decide how soon -- and at what cost -- most residential
consumers will be given a choice among competing telephone companies.
The court agreed to determine how to calculate fees that local phone
companies charge new competitors for using their phone networks. Under
the 1996 Telecommunications Act, local phone companies have to let rivals
use their networks to offer competing services. But the rivals must pay
for use of the transmission networks. Without such an arrangement, it
would be too costly for competing local phone companies to build brand-new
networks. The Supreme Court also agreed to review a case that pits the
FCC and cable operators against major utilities. The utilities, which charge
cable-TV companies for use of their telephone poles or underground
facilities,
argue that the FCC lacks authority to regulate these charges when the cable
companies also provide high-speed Internet access. The utilities have
challenged the FCC in court, and the FCC and the National Cable Television
Association appealed to the high court for review.
[SOURCE: Wall Street Journal (A3), AUTHOR: Robert S. Greenberger And Jill
Carroll]
(http://interactive.wsj.com/articles/SB980174457905930015.htm)
(requires subscription)
See Also:
JUSTICES TO REVIEW TELECOM CASES
[SOURCE: New York Times, AUTHOR: Stephen Labaton]
(http://www.nytimes.com/2001/01/23/technology/23TELE.html)
(requires registration)
HIGH COURT TO REVIEW RULING ON PHONE LINES
[SOURCE: Washington Post (E01), AUTHOR: Peter S. Goodman]
(http://washingtonpost.com/wp-dyn/articles/A31127-2001Jan22.html)

SPECTRUM

AUCTION FAILS TO OPEN AIRWAVES
Issue: Spectrum
The nation's biggest mobile phone companies are sharing virtually all of the
bounty in the largest auction of airwaves in U.S. that was supposed to be a
boon for smaller companies trying to secure a role in the next generation of
wireless telephone services. In a contest that has attracted bids nearing
$17
billion, six of the eight companies that have secured the biggest chunks of
the radio spectrum are largely unknown entities that have won licenses set
aside for small companies. Documents filed with the Federal Communications
Commission show that each is backed substantially by some of the largest
names
in the industry: AT&T Wireless, Sprint PCS, VoiceStream and Cingular, a new
national partnership forged by local telephone giants SBC Communications and
BellSouth. "The notion that this was designed to promote smaller businesses
turns out to be an absolute fraud," said Gene Kimmelman, co-director of the
Washington office of Consumers Union. "We're not seeing any increased
competition. Money wins."
[SOURCE: Washington Post (A01), AUTHOR: Peter S. Goodman]
(http://washingtonpost.com/wp-dyn/articles/A19616-2001Jan19.html)

RADIO

'BROTHER,' WHERE ART THOU?
Issue: Radio
The soundtrack to the Coen brothers' most recent movie, "O Brother, Where
Art
Thou?," was the No. 2 best-selling country album in the Washington Metro
area
last week, but don't expect to hear any of its songs on the radio. The album
is full of fresh arrangements of old bluegrass music. It has become the No.
1
best-selling album on Amazon.com, bumping the Beatles from their place. But
country music radio isn't playing the songs because country music program
directors
don't see "hillbilly" country fitting in with the likes of Shania Twain, Tim
McGraw,
the Dixie Chicks or Alan Jackson. In fact, the more slickly produced
hit-making
music of modern day Nashville doesn't even acknowledge any diversity within
the
country music genre - a decision that is reflected in the narrow offerings
they
put on the air. Even acknowledging that most of the Depression era music
really
_wouldn't_ fit on modern country stations, there is at least one that might:
"I Am a Man of Constant Sorrow." In fact a rock version of the song charted
in 1971.
But this isn't 1971, now is it? Jon Anthony, assistant program director at
WMZQ (98.7),
Washington's longtime country powerhouse, puts it this way: "In the
corporate
environment these days, you're looking for indicators first rather than
going
with your gut" when deciding whether to play a song, Anthony says. "You
watch
to see how it sells." So who will take a chance on an "unproven" song: Radio
veteran
Ray Davis, of public radio station WAMU (88.5) has been playing the
soundtrack. It's
too bad that traditional music has no place on commercial stations such as
WMZQ, he says.
"I guess it just doesn't fit what they do over there," says Davis.
[SOURCE: Washington Post (C03), AUTHOR: Frank Ahrens
(http://washingtonpost.com/wp-dyn/articles/A32217-2001Jan22.html)
--------------------------------------------------------------

Communications-related Headlines for 1/22/01

DIGITAL DIVIDE
Children's Computer Use Grows, but Gaps Persist, Study Says (NYT)
FCC Releases Report On Global Telecommunications Development
Initiative (FCC)

TELEVISION
FCC Deals a Setback to Broadcasters In Ruling on Cable Firms and
Digital TV (WSJ)

SILICON VALLEY
Experts Debate Net's Role In Power Crisis (USA)
Education Leads Silicon Valley Wish List (NYT)

DIGITAL DIVIDE

CHILDREN'S COMPUTER USE GROWS, BUT GAPS PERSIST, STUDY SAYS
Issue: Digital Divide
A report to be issued today by the David and Lucile Packard Foundation says
that seventy percent of American households with children ages 2 to 17 have
computers, and 52 percent are connected to the Internet. But only about 22
percent of children in families with annual incomes of less than $20,000
have access to a home computer, compared with 91 percent of those in
families with incomes of more than $75,000. Children in low-income families
with computers used it less than those in high-income families, perhaps in
part because they were less likely to have an Internet connection. Though
almost every school in the nation is now wired to the Internet, great
disparities are evident in how they use computers, says the report. Schools
serving poor children were more likely to emphasize word processing and
other simple tasks while those serving more affluent students taught
computer skills to promote problem-solving and a deeper understanding of an
area of study. "Efforts to ensure equal access to computer-related learning
opportunities at school must move beyond a concern with the numbers of
computers in different schools toward an emphasis on how well those
computers are being used to help children develop intellectual competencies
and technical skills," says Henry Jay Becker, a professor at the University
of California at Irvine.
[SOURCE: New York Times (A11), AUTHOR: Tamar Lewin]
(http://www.nytimes.com/2001/01/22/technology/22COMP.html)
(requires registration)

FCC RELEASES REPORT ON GLOBAL TELECOMMUNICATIONS DEVELOPMENT INITIATIVE
Issue: Digital Divide
Friday, Chairman William Kennard released a report titled, Connecting the
Globe: Telecommunications Development 2000, which describes the FCC's
initiative to work with developing/emerging nations to overcome the
regulatory obstacles contributing to the global Digital Divide. Upon its
release Chairman Kennard remarked, "Increased collaboration between the FCC
and our foreign counterparts is essential to promoting pro-competitive
policies abroad to lower consumer costs and increase
access to telecommunications services.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Mass_Media/News_Releases/2001/nrmm0102.html)

TELEVISION

FCC DEALS A SETBACK TO BROADCASTERS IN RULING ON CABLE FIRMS AND DIGITAL TV
Issue: DTV
The Federal Communications Commission decided that cable-television
operators don't have to carry TV stations' current programming as well as a
digital copy, a setback for broadcasters who argue they need both signals
carried during the transition to digital TV. William Kennard, former FCC
Chairman who resigned Friday has long said he opposes forcing cable
companies to carry both analog and digital signals. The broadcasters and
cable industry fought hard over the issue, known as "digital must-carry."
The broadcasters say that until most viewers have TV sets that can pick up
digital signals, cable companies should be required to carry both current
analog programming and their future digital programming. Otherwise, they
say, they have little incentive to invest in digital technology. The FCC
also decided to further explore whether new TV sets should be required to
pick up over-the-air digital programming in addition to the current analog
signals. Such a requirement would address broadcasters' worry that when they
turn off their analog signal and switch to digital that they will lose many
viewers. Manufacturers say such requirements would add significantly to the
cost of buying a TV set -- a claim broadcasters dispute.
[SOURCE: Wall Street Journal (B8), AUTHOR: Jill Carroll]
(http://interactive.wsj.com/articles/SB98012126839793097.htm)
(requires subscription)
See Also:
FCC ISSUES FURTHER ORDER IN DIGITAL TELEVISION TRANSITION
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Mass_Media/News_Releases/2001/nrmm0102.htm)

SILICON VALLEY

EXPERTS DEBATE NET'S ROLE IN POWER CRISIS
Issue: Internet
Is the Internet a power-sucking vampire that's worsening the energy crisis
in California or an economic savior that saves billions of dollars by using
less fossil fuel and by pumping up productivity? The debate flared last year
when Mark Mills - an energy analyst - warned Congress that the Internet
economy would take 50% of the nation's power. Experts estimate that
Internet-related computers, telecommunications and networking devices siphon
3% to 8% of the nation's electricity. Experts argue that the Net and other
technology actually save energy and are the main forces behind the USA's
record economic growth of the late 1990s. The debate arose again last week
as electricity shortages forced California utilities to impose rolling
blackouts across the state, leaving 1 million businesses and residents in
the dark. "Intel uses energy, but it ain't a steel mill," Joseph Romm, a
former U.S. Department of Energy official says. "When Microsoft sells
billions of dollars of software, it uses very little energy. Compare that to
manufacturing thousands of autos."
[SOURCE: USA Today (1B), AUTHOR: Edward Iwata]
(http://www.usatoday.com/life/cyber/tech/2001-01-22-power.htm)

EDUCATION LEADS SILICON VALLEY WISH LIST
Issue: Policy
Will technology executives have a voice in the Bush Administration?
According to Barry Rubin, a professor at the George Washington University
Graduate School of Political Management in Washington, the technology sector
had matured enough that many more executives recognize Washington's
relevance. Rubin says they are likely to have influence on filling vacancies
on regulatory agencies and naming assistant and deputy secretaries in
crucial cabinet departments. Rich White, a former congressman and now chief
executive of TechNet says his contemporaries are all concerned with math and
science education and getting technology into the classroom. There is a
growing awareness that the technology industry could be affected by
government policies affecting the general economic climate - but little
agreement on what should be done in that sphere, he said. Nor is there a
consensus in the high-technology industry on antitrust and many other
issues, Mr. White said.
[SOURCE: New York Times (C4), AUTHOR: Barnaby J. Feder]
(http://www.nytimes.com/2001/01/22/technology/22SILI.html)
(requires registration)

--------------------------------------------------------------

Communications-related Headlines for 1/19/01

INTERNET
Free-Speech Advocates Fight Filtering Software in Public Schools
(NYT)
Hook Up Rural Asia, Some Say, and Poverty Can Be Mitigated (NYT)
NBC Cuts 150 Internet Jobs (NYT)

TELEVISION
FCC Takes a Step on Interactive TV In the Wake of Kennard's
Departure (WSJ)
Report to Congress on the Public Interest Obligations of
Broadcasters (FCC)
FCC Review Of Children's Television Rules (FCC)

MERGER
AOL Time Warner (WP)

NTIA
NTIA's 2000 Annual Report (NTIA)

INTERNET

FREE-SPEECH ADVOCATES FIGHT FILTERING SOFTWARE IN PUBLIC SCHOOLS
Issue: Free-Speech
One month after Congress passed a law pressuring public schools and
libraries to install blocking or filtering software on computer terminals to
screen out Internet smut, three free-speech powerhouses are gearing up to
slay the measure in federal court. The law requires public libraries that
receive E-rate funds to install some sort of technology on computer
terminals used by adults to block Internet access to visual images that are
obscene or depict child pornography. The American Civil Liberties Union will
file a lawsuit within two months attacking the constitutionality of the law.
"This law requires, for the first time in the nation's history, that local
libraries censor speech for every adult and every child. That's got to
present First Amendment problems," said Chris Hansen, a senior staff
attorney with the ACLU. The People for the American Way Foundation and the
American Library Association are also planning legal attacks on the new law.

[SOURCE: New York Times (CyberTimes), AUTHOR: Carl S. Kaplan]
(http://www.nytimes.com/2001/01/19/technology/19CYBERLAW.html)
(requires registration)

HOOK UP RURAL ASIA, SOME SAY, AND POVERTY CAN BE MITIGATED
Issue: Digital Divide
During the heady days of the dot-com boom, the hope was that a coming era of
telecommunications would help communities in the developing world narrow the
digital divide. In Indonesia, where fewer than 2 of every 100 people use the
Internet, the hope was that wireless
devices on a new global standard would bring e-mail to people too poor for
personal computers. With technology stocks slumping, the telecommunications
industry reeling at the cost of its wireless future, and rising doubts that
even rich-country users will quickly embrace the new technology, a more
pessimistic forecast for the third generation, or 3G, is emerging. Despite
rapid urbanization, most people in the developing world still do not live in
cities. Costly licenses and equipment militate against the spread of mobile
phones to poor communities, especially rural ones. "It's an illusion to
think that 3G will close the digital divide," said Bertrand Bidaud, a
wireless industry analyst at the Gartner Group in Singapore.
[SOURCE: New York Times (B1), AUTHOR: Wayne Arnold]
(http://www.nytimes.com/2001/01/19/technology/19DIVI.html)

NBC CUTS 150 INTERNET JOBS
Issue: Jobs
NBC Internet announced a second round of deep job cuts Thursday as it braces
for a slowdown in online advertising. The 150 layoffs represent about 30
percent of the company's work force. In August, NBC Internet slashed 170
jobs. NBC Internet's parent company, NBC, told its employees last week that
it would cut up to 10 percent NBC's work force, up to 600 jobs.
[SOURCE: New York Times (Online), AUTHOR: Associated Press]
(http://www.nytimes.com/aponline/business/AP-NBC-Internet-Layoffs.html)
(requires registration)

TELEVISION

FCC TAKES A STEP ON INTERACTIVE TV IN THE WAKE OF KENNARD'S DEPARTURE
Issue: Television
The Federal Communications Commission took a first step toward setting rules
for emerging interactive-television technologies amid a flurry of final
actions by the departing chairman, William Kennard. Thursday, the FCC opened
a formal inquiry, exploring whether an integrated company such as the merged
AOL Time Warner, could unfairly favor partners. Chairman Kennard said
Thursday that he wanted the FCC to "get ahead of the curve" on interactive
television, despite its infancy. He said he had concerns that interactive-TV
services affiliated with a cable company could discriminate against rivals.
The agency is also working on rules for digital-television broadcasting, and
could issue an order on the matter Friday, the last day in office for
Chairman Kennard.
[SOURCE: Wall Street Journal, AUTHOR: Jill Carroll]
(http://interactive.wsj.com/articles/SB979858253620577223.htm)
(requires subscription)

REPORT TO CONGRESS ON THE PUBLIC INTEREST OBLIGATIONS OF BROADCASTERS
Issue: Television
FCC Chairman William Kennard released a report outlining eleven major
principles on how broadcasters can fulfill their statutory duty to serve the
public interest. Entitled "Report to Congress on the Public Interest
Obligations of Television Broadcasters as They Transition to Digital
Television," the report said this broad examination of television
broadcasters' public interest obligations is intended to promote thoughtful
discussion among and between broadcasters and their communities. It draws on
comments received in the Commission's pending Notice of Inquiry on the
subject that was released on December 20, 1999.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Common_Carrier/News_Releases/2001/nrcc0102.html)

FCC REVIEW OF CHILDREN'S TELEVISION RULES
Issue: Television
The FCC reported today that commercial television licensees have made many
efforts to comply with the scheduling and promotional rules for children's
educational and informational programming and are complying with the
three-hour core programming guideline established in the 1996 Children's
Television Report and Order.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Mass_Media/News_Releases/2001/nrmm0001.html)
See Also:
CME DENOUNCES BROADCASTERS CLAIM OF UNCONSTITUTIONALITY FOR CHILDREN'S TV
RULES
[SOURCE: Center For Media Education]
(http://www.cme.org/press/010118pr.html)

MERGER

AOL TIME WARNER
Issue: Merger
[Editorial] A year ago the, with the announcement of a merger between AOL
and Time Warner, some feared the creation of a media monopolist that would
have the power to crush competition at consumers' expense. At that time,
there was even anticpation of how the new merger would affect broadband and
instant messaging. A year later the atmosphere is rather different. Now,
after bowing to a series of regulatory conditions, the question at hand is
the basic profitability of the merged entity. The question is whether the
new company will flourish. Nearly a third of AOL's stock price has been
wiped away by the tech stock bubble bursting. Time Warner, itself, has lost
millions on World Championship Wrestling; CNN has lost viewers to upstart
news-only channels. Now, the new company will have to blend two decidedly
different corporate cultures: the opportunistic approach of AOL with the
conservative structure of Time Warner.
[SOURCE: Washington Post (A36), AUTHOR: Editorial Staff]
(http://washingtonpost.com/wp-dyn/opinion/A17233-2001Jan19.html)

NTIA

NTIA'S 2000 ANNUAL REPORT
Issue: NTIA
The NTIA has released its Annual Report with a separate Foreword. Both of
which have been posted to its Web site.
[SOURCE: NTIA]
(http://www.ntia.doc.gov/ntiahome/annualrpt/2001/2000annrpt.htm)

--------------------------------------------------------------

Communications-related Headlines for 1/18/01

OWNERSHIP
Report Finds Some Gains In Minority Broadcast Ownership (NTIA)

CONVERGENCE
CNN Plans to Lay Off 400 as Part of Revamping (NYT)
Channel and Web Surfing, With AOLTV (WSJ)

PRIVACY
Electronics Trade Group Backs Privacy Measures for the U.S. (NYT)

OWNERSHIP

REPORT FINDS SOME GAINS IN MINORITY BROADCAST OWNERSHIP
Issue: Broadcasting/Ownership
This week, the Department of Commerce released a report, entitled Changes,
Challenges, and Charting New Courses: Minority Commercial Broadcast
Ownership in the United States, that provides the latest data on minority
ownership, assesses the impact on minority ownership of the recent trends
in industry consolidation, and highlights the challenges facing minority
owners as they seek to maintain or expand their broadcast properties. The
report, produced by the Commerce Department's National Telecommunications
and Information Administration (NTIA), found that 3.8% of full power
commercial radio and television stations are licensed to minorities, a 0.9%
increase over 1998. The report also found that while minority broadcasters
owned about 4 percent of commercial AM and FM stations, about 426 stations,
minorities owned less than 2 percent of commercial television stations
in the U.S. Gregory L. Rohde, assistant secretary of commerce and NTIA
administrator, said: "While minority broadcasters have made gains in
ownership of radio stations, the number of full power television stations
owned by minorities is at the lowest level since NTIA began issuing reports
in 1990. We must maintain our nation's traditional commitment to diversity
in broadcasting."
[SOURCE: NTIA]
(http://www.ntia.doc.gov/ntiahome/press/2001/minreport11601.htm)

CONVERGENCE

CNN PLANS TO LAY OFF 400 AS PART OF REVAMPING
Issue: Jobs/Journalism
Yesterday, CNN announced that it would lay off about 400 people -
approximately 10 percent of its work force - as part of a reorganization
effort that increases focus on the news organization's Internet operations.
Journalist will now be required to produce reports that will be delivered
across platform: on television, the Internet and radio. The changes come
as no surprise following the merger of CNN's parent company Time/Warner with
Internet giant AOL. Also for the first time, all news-gathering operations
will be orchestrated by a central news desk. The network's top executives
were heralding the changes as a new beginning for CNN, which has lost market
share to new competitors like Fox News Channel and MSNBC. "In many ways, it
will be a new CNN for a new era," Tom Johnson, the CNN Group chairman, said
in an interview. "It will be a CNN which will have convergence of its
television assets and its Internet assets."
[SOURCE: New York Times, AUTHOR: Jim Rutenberg]
(http://www.nytimes.com/2001/01/18/technology/18CNN.html)
(requires registration)

CHANNEL AND WEB SURFING, WITH AOLTV
Issue: Convergence
America Online has recently given in to the desire to combine everyday
machines
into a single all-purpose gadget by creating an appliance that combines
television with the Internet, called AOTV. Like Microsoft's WebTV, it
delivers
a compromised but inexpensive version of the Internet to ordinary television
sets.
WebTV sales have been consistently lousy, and AOL's massive media marketing
muscle may give WebTV a run for its money. AOLTV has a feature that allows
customers to chat with fellow viewers, thus endowing the solitary act of
watching
television with the communal joy of watching movies in a theater. You and
your
cyberpals could play along with quiz shows, critique the stars' outfits on
awards
shows and triple the fun of shows like "Survivor," especially during
commercials.
If you already have an AOL account, adding AOLTV service lets your computer
and
television get online simultaneously.
[SOURCE: New York Times, AUTHOR: David Pogue]
(http://www.nytimes.com/2001/01/18/technology/18STAT.html)
(requires registration)

PRIVACY

ELECTRONICS TRADE GROUP BACKS PRIVACY MEASURES FOR THE U.S.
Issue: Privacy
The American Electronics Association, in a policy reversal that shows a
widening
rift in the technology industry, Thursday will release "principles" for
Congress
to follow in writing new Internet privacy rules. Worried by efforts in state
legislatures to write new privacy rules, the group will say for the first
time
that it supports federal privacy legislation so long as it supersedes state
laws
on Internet privacy. The AEA has long opposed federal privacy legislation,
instead
urging a voluntary industry self-regulation framework. But the group's state
lobbyists have come under increasing pressure in recent months from state
officials
who say their constituents are demanding action. "I don't think there's a
company
in this country that can tolerate 10 different state bills, much less 50
different
state bills," said John Palafoutas, AEA senior vice president for domestic
policy.
[SOURCE: Wall Street Journal, AUTHOR: Mitchel Benson and Glenn R. Simpson]
(http://interactive.wsj.com/articles/SB979780462212710450.htm)
(requires subscription)

--------------------------------------------------------------

Communications-related Headlines for 1/17/01

DIGITAL DIVIDE
Report Card Mixed on Free Computers for Pupils (NYT)

FCC
FCC Chairman Responds to the D.C. Circuit's Decision on EEO Rule
(FCC)

INTERNET
Let's Not Rush Into Electronic Voting (SJM)
E-Mail Contact With Teachers Rare (NYT)

DIGITAL DIVIDE

REPORT CARD MIXED ON FREE COMPUTERS FOR PUPILS
Issue: Digital Divide
Last year, Computers for Youth, a nonprofit organization gave every student
at the KIPP Academy in the South Bronx a free secondhand computer to use at
home. Loaiza Colon's computer broke down three months ago. Other students,
whose computers are still running, have complained that they cannot continue
paying for Internet service or ink for their printers or use the computers
mainly for video games. These experiences reflect the benefits and
shortcomings of a new type of computer donation program that focuses on
placing computers directly in students' homes rather than in schools. Such
programs have become increasingly popular in recent years as educators
promoted the advantages of home computers and companies latched onto
computer donations as a means of philanthropy as well as tax breaks.
Computers for Youth recently surveyed 155 KIPP students who got free
computers last year. Only half said they were still using them daily or
weekly.
[SOURCE: New York Times, AUTHOR: Nina Siegal]
(http://www.nytimes.com/2001/01/17/education/17COMP.html)
(requires registration)

FCC

FCC CHAIRMAN RESPONDS TO THE D.C. CIRCUIT'S DECISION ON EEO RULE
Issue: Jobs/FCC
Yesterday, the D. C. Circuit, in a decision by Judge Ginsburg, joined by
Judges Sentelle and Henderson, held that the FCC's EEO rule "put[s] official
pressure upon broadcasters to recruit minority candidates, thus creating a
race-based classification that is not narrowly tailored to support a
compelling governmental interest and is therefore unconstitutional." The FCC
Chairman William released a statement in response to the court's ruling:
"Today's decision is a defeat for diversity. At a time when many Americans
are outraged at the lack of minorities in prime time and in the boardrooms
of America, the broadcasters have once again used the courts to strike down
even a modest outreach effort."
[SOURCE: FCC]
(http://www.fcc.gov/Speeches/Kennard/Statements/2001/stwek103.html)
See Also:
COURT RULES AGENCY ERRED ON MANDATE FOR MINORITIES
[SOURCE: New York Times (A15), AUTHOR: Stephen Labaton]
(http://www.nytimes.com/2001/01/17/national/17RACE.html)
(requires registration)

INTERNET

LET'S NOT RUSH INTO ELECTRONIC VOTING
Issue: Internet
As part of the national concern about election reform, commissions and
legislative committees are meeting or preparing to meet across the country.
Many are suggesting that all-electronic, and even Internet based, voting
could be an answer to recent election troubles. But columnist Dan Gilmore
warns that such high tech solutions could cause more problems than they
resolve. Peter Neumann, principal scientist at Menlo Park-based SRI
International's Computer Science Lab, will testify to the high risks
involved with Internet voting before the California Assembly Committee on
Elections Reapportionment and Constitutional Amendments. "You can't trust
the software platforms on which systems are running," says Neumann. "You
can't trust the servers. You can't even be assured you're getting software
from the server you think you're getting it from."
[SOURCE: San Jose Mercury News, AUTHOR: Dan Gillmor]
(http://www0.mercurycenter.com/svtech/columns/front/docs/dg011701.htm)

E-MAIL CONTACT WITH TEACHERS RARE
Issue: Ed-Tech
Although e-mail is now ranked as number one application used on the
Internet, and even though most teachers in the nation have e-mail accounts
provided by their school districts, widespread electronic communication in
K-12 settings is not happening. Many districts don't provide e-mail
addresses to students, often because of liability concerns. In areas where
students have e-mail accounts at home, teachers have limited time during the
day to answer e-mail. Nevertheless, e-mail has opened communication between
teachers and parents, as well as among teachers and administrators in
schools. And in some cases, teachers are using e-mail to accept assignments
or discuss a project with a student. "But the lack of universal access by
students will limit this medium's use as a 'required' mode for some time --
except in high-income settings," says Hank Becker, professor of education at
the University of California at Irvine.
[SOURCE: New York Times (CyberTimes), AUTHOR: Susan Stellin]
(http://www.nytimes.com/2001/01/17/technology/17EDUCATION.html)
(requires subscription)

--------------------------------------------------------------

(c)Benton Foundation 2001. Redistribution of this email publication -- both
internally and externally -- is encouraged if it includes this message.

--------------------------------------------------------------

Benton's Communications-related Headline Service is posted Monday through
Friday. The Headlines are highlights of news articles summarized by staff
of our Communications Policy Program (CPP) (www.benton.org/cpphome.html).
They describe articles of interest to the work of the Foundation --
primarily those covering long term trends and developments in
communications, technology, journalism, public service media, regulation
and philanthropy. While the summaries are factually accurate, their often
informal tone does not represent the tone of the original articles.
Headlines are compiled by Rachel Anderson (rachel( at )benton.org) and
Mugo Macharia (Mugo( at )benton.org) -- we welcome your comments.

The Benton Foundation works to realize the social benefits made possible by
the public interest use of communications. Bridging the worlds of
philanthropy, public policy, and community action, Benton seeks to shape
the emerging communications environment and to demonstrate the value of
communications for solving social problems.

Other projects at Benton include:
Connect for Kids (www.connectforkids.org)
Digital Divide Network (www.digitaldividenetwork.org)
Oneworld US (www.oneworld.net/us)
Open Studio: The Arts Online (www.openstudio.org)
Sound Partners for Community Health (www.soundpartners.org)
To subscribe to other free Benton Foundation newsletters, visit:
(http://www.benton.org/Resources)

*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*

To join Benton's Up For Grabs Discussion Forum (which also
includes the daily Headlines service), send email to:
listserv( at )cdinet.com
In the body of the message, type only:
subscribe upforgrabs-L YourFirstName YourLastName

To unsubscribe, send email to:
listserv( at )cdinet.com
In the body of the message, type only:
signoff upforgrabs-L

If you have any problems with the service, please direct them to
benton( at )benton.org